The Marketing mix of Yatra analyses the 4Ps of Yatra, including the Product, Price, Place, and Promotions. Yatra.com was founded in 2006 by Dhruv Shringi, Sabina Chopra, and Manish Amin as an Indian online travel search engine and online travel agency. It is a public entity based in Gurgaon, Haryana, and has expanded to become one of the top three Indian travel websites.
The company is capitalizing on the fact that a substantial portion of the market still uses traditional booking methods. Most of Yatra’s marketing strategies are therefore inclined towards tapping this market. With the better travel packages and discounts that Yatra offers to users in line with customer’s expectations, it continues to attract more and more people daily.
- Type: Online travel agency
- Industry: Travel
- Founded: August 2006
- Founders: Dhruv Shringi, Manish Amin, and Sabina Chopra
- Headquarters: Gurugram, Haryana, India
- Area served: India
- Key people: Dhruv Shringi (Chairman) and Rajesh Magow (CEO)
- Number of employees: 3,000
Table of Contents
Yatra Product Strategy
Yatra.com offers its users various products, mainly from the Hotels, Trains, Flights, Holidays, and bus sectors. You can make your online bookings and authentic information that will enable you to make informed decisions during your tours, destinations, and travels. Yatra.com’s products are available in several brands: TravelGuru, Yatra, Adventure Nation, TSI, and Adventure Nation.
In a nutshell, Yatra.com is a one-stop shop for all your tours and travel needs. From hotel room booking through air tickets to holiday packages and car rentals, Yatra.com offers you everything you need as a traveler. The company can offer users reservations for at least 3,000 hotels throughout India and beyond. It provides real-time access to about 100,000 hotels in the world, thus making it one of the largest hotel consolidators in India and beyond.
- Airline Reservation and Flight Ticket Booking: Yatra provides online services for airline reservations and flight ticket bookings, making air travel more accessible for leisure and business travelers.
- Hotel Bookings: The company has a substantial presence in the hotel booking sector, offering domestic and international hotel reservations.
- Holiday Packages: Yatra also curates and offers various packages catering to travelers’ diverse needs and preferences.
- Ground Transportation Services: This includes booking facilities for buses, trains, inter-city, and point-to-point cabs, enhancing the overall travel experience for their customers.
- Additional Travel Services: Yatra extends its offerings to include in-city activities, homestays, and cruise bookings.
- Corporate Travel Services: With a strong portfolio of over 800 large corporate customers, Yatra is India’s leading corporate travel services provider.
- Extensive Hotel and Homestay Network: Yatra boasts approximately 105,600 hotels and homestays contracted in about 1,490 cities across India and around 2 million hotels globally, making it India’s largest platform for domestic hotels.
Yatra Place Strategy
Yatra.com is mainly an Indian travel online site but also serves other countries. It allows its users to have easier and smoother tourist plans worldwide. The company is interested in the number of regions it is in and ensures that it offers its users the best deals. All travelers who are frequent internet users can make Yatra.com their booking office.
Yatra’s place strategy can be summarized in five key points:
- Strong Corporate Presence: Yatra has established a robust presence in the corporate travel sector, serving a significant portion of India’s top 100 listed companies. This includes three of the big four accounting firms and three of the top five technology companies in the country. This strong corporate client base demonstrates Yatra’s strategic focus on high-value business travel services.
- Geographic Expansion: The company has expanded its operational footprint across various regions, including Africa and Asia. This global expansion strategy diversifies its market presence and enhances its service offerings to multinational corporations, indicating a strategic approach to geographic and customer diversity.
- Investment in B2B Opportunities: Post-IPO, Yatra allocated a substantial amount towards mergers and acquisitions, explicitly targeting the B2B space. This move aims to expand its product platform for business travel customers, indicating a strategic investment to strengthen and broaden its service offerings in the corporate sector.
- Growth in Air Travel and Hotel Bookings: Yatra has seen a significant increase in air passenger bookings and growth in its hotel and packages segment. This growth is attributed to both a recovery in domestic travel and the addition of new distribution partners, showing a strategic focus on expanding its core service areas.
- Focus on Consumer Brand and Discretionary Spend: With a rise in discretionary spending, particularly in travel and dining, Yatra is well-positioned to capitalize on this trend. The company’s strategy includes leveraging its consumer brand to capture a more significant market share, particularly in India’s robust economic growth and increasing per capita GDP.
Yatra Pricing Strategy
Yatra mainly generates revenues from adverts and affiliations, offering many tools for website owners to use for affiliation. Such tools to affiliates include the latest creatives and social media platforms, dynamic booking engines, etc. Affiliates are paid on a commission basis, with Rs 270 to 400 paid for domestic flight bookings, while Rs 1000 is paid as commission for each international flight or holiday booking. Rs500 is the commission for domestic hotels.
- Market Share Expansion in Air Travel: Yatra has consistently grown its market share in the air travel sector. In the second quarter of 2024, the company reported a significant 31.2% year-over-year increase in air passenger bookings. This growth outperformed the industry’s overall growth rate, indicating a competitive pricing strategy contributing to increased market share.
- Softening of Air Ticket Prices: There has been a noticeable softening in air ticket prices, particularly for international travel. This change is primarily attributed to the increased deployment of airline capacity, leading to more competitive pricing. Yatra has adapted to this market shift, balancing ticket pricing with demand stimulation.
- Corporate Travel Sector Growth: Yatra has further solidified its position in the corporate travel sector, securing new corporate accounts with substantial potential annual billing. This suggests a targeted pricing strategy within the corporate travel segment, focusing on volume and value-based pricing to attract and retain large corporate clients.
- Focus on Quality and Diversification in Hotel Bookings: Revenue from Yatra’s hotel and packages business showed significant growth, attributed to the recovery in domestic travel and the addition of new distribution partners. The focus on selling better quality hotels for business travelers indicates a strategic pricing approach that aligns with its clientele’s evolving preferences and requirements.
- Adaptation to Economic Trends: Despite global economic trends like decreasing inflation and consistent growth in India’s GDP, Yatra’s pricing strategy appears adaptive and responsive to macroeconomic conditions. The company’s approach seems to be in sync with the growth in discretionary spending, particularly in travel and dining out, which is a crucial driver for the industry.
Yatra Promotion Strategy
Partnerships are some of the most critical marketing strategies used in the mix. An example of such partnerships includes the holiday-cum shopping card product between Yatra and SBI Bank, the largest bank in India. Yatra also launched an e-gift card product in 2013 in collaboration with Qwikcliver.
Another digital marketing strategy involves acquiring already established organizations within the industry. So far, it has made about three acquisitions- MagicRooms.in (a global distribution system provider), Travel Services International (ticket consolidator), Travelguru.com, and BuzzInTown.com (an Indian events & entertainment portal).
Yatra also contracts celebrities to endorse the brand in promotional campaigns. Such endorsements include Salman Khan- a superstar Bollywood actor who, in 2012, became not only a brand ambassador but also a shareholder of the travel website. Boman Irani is another Bollywood actor on record who has been a Yatra.com ambassador.
Yatra.com has been involved in sports as an official social media marketing and travel partner of Rajasthan Royals IPL powerhouse.
The company is managing a Facebook page promotion revolving around advertising the “Happy Travellers” tagline. This is in conjunction with Facebook ads, which have contributed about INR 1.5 million in additional monthly revenue for the company.
Some Recent Video ads and Print ads for Yatra are:
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